In the microgrid, virtual synchronous generator technology can significantly enhance the anti‐interference characteristics of the system frequency and bus voltage, as well as solve the problems of insufficient damping and low inertia. However, the system frequency and active power oscillation caused by power fluctuations and grid faults threaten the stable operation of the grid seriously. Therefore, for an alternating current (AC) microgrid multi‐virtual synchronous generator (VSG) parallel system, an improved virtual synchronous generator control algorithm based on a fuzzy inference system is proposed, which adjusts the values of virtual inertia and damping coefficient dynamically through fuzzy logic rules to realize the coordinated control of the two. The enhanced VSG algorithm described in this research has a substantial influence on power‐frequency oscillation suppression, decreases active power and frequency overshoot, shortens the adjustment time, and improves system frequency stability active power, according to simulation and experimental findings.